BAR VS GLDL
4 min read
By Ron Koren, ETF Insider

BAR VS GLDL

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing a convenient and diversified way for investors to access various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: BAR (GraniteShares Gold Trust) and GLDL (Direxion Daily Gold Miners Index Bull 2X Shares). Our analysis will cover a range of key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

BAR Vs GLDL: Overview

BAR and GLDL represent two distinct strategies within the gold sector. While BAR is designed to closely track the price of gold, GLDL aims to provide double the daily performance of an index of gold mining companies. This fundamental difference in approach leads to diverse investment outcomes, each with its set of opportunities and risks that we will delve into further.

BAR Vs GLDL: Sectors and Top Holdings

The BAR ETF focuses primarily on the physical ownership of gold, holding allocated gold bullion. On the other hand, GLDL invests in the stocks of companies within the gold mining industry, such as Newmont Corporation, Barrick Gold Corporation, and Kinross Gold Corporation. A clear understanding of the sectors and top holdings helps investors determine which ETF aligns better with their investment objectives and risk tolerance.

BAR  overlap BAR VS GLDLBAR overlap BAR VS GLDL

BAR Vs GLDL: Capitalization and Strategy

BAR boasts a significant Asset Under Management (AUM), underlining its popularity among investors seeking a direct exposure to the value of gold. In contrast, GLDL pursues a leveraged strategy that aims to provide double the daily returns of the index it tracks. The differences in capitalization and strategy between these ETFs contribute to varying levels of potential returns and risk, factors that investors must carefully consider.

BAR Vs GLDL: Tracking and Exposure

BAR's primary objective is to replicate the day-to-day movement of gold prices, and it achieves this by owning physical gold bullion. On the other hand, GLDL utilizes derivatives and other financial instruments to provide double the daily performance of the Solactive Gold Miners Custom Index. Understanding these distinct tracking and exposure methods is crucial for investors to select the ETF that aligns with their investment goals and risk appetite.

Conclusion

In the world of ETFs, BAR and GLDL stand as unique options, each offering a specialized approach to investing in the gold sector. To gain deeper insights into the intricacies of their holdings, correlations, overlaps, and more, ETF Insider emerges as an invaluable tool. With its user-friendly app, ETF Insider provides comprehensive information on these financial instruments and beyond, empowering investors to make well-informed decisions.

Disclaimer: This article is provided for informational purposes only and does not offer investment advisory services.

Sources:

Get started

FAQ

  • Why is BAR better than GLDL?

    BAR may be considered better than GLDL for some investors due to its specific focus, offering diversification.

  • Does GLDL beat BAR?

    GLDL's performance relative to BAR will vary over time, depending on market conditions.

  • Should I invest in BAR or GLDL?

    The choice between BAR and GLDL should align with your investment goals, risk tolerance, and desired exposure.

  • Are BAR and GLDL good investments?

    Both BAR and GLDL can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between BAR and GLDL?

    The correlation between BAR and GLDL can vary over time, reflecting differences in performance.